GCSE Business 1.4.4 Business Planning

Imagine you're drafting a business plan for a new coffee shop. What is the primary purpose of identifying a specific business idea like 'serving rare, sustainably sourced coffees' in this plan?

• To ensure the coffee shop remains profitable

• To clearly define the coffee shop's goals and vision

• To facilitate the hiring process for baristas

• To comply with legal requirements for food and beverage businesses

Imagine you're drafting a business plan for your new cafe, 'The Morning Brew'. Which of the following would NOT be included in your business plan?

• Forecast revenue, cost, and profit for 'The Morning Brew'

• Personal hobbies and interests of 'The Morning Brew's' founder

• Cash-flow forecast for 'The Morning Brew'

• Sources of finance for 'The Morning Brew'

How does a business plan help a new cafe in minimizing risk?

• By eliminating competition

• By guaranteeing a fixed profit margin

• By identifying potential challenges and solutions

• By ensuring all employees are satisfied

What role does market research play in the business plan of a new coffee shop?

• It identifies the target market and consumer needs

• It helps in choosing the coffee shop logo

• It is used to determine the coffee shop's name

• It decides the coffee shop's location

Why is the marketing mix important for launching a new smartphone in the market?

• It lists all the potential investors for the smartphone launch

• It outlines the legal structure of the smartphone company

• It provides a detailed biography of the smartphone's design team

• It helps in determining the right product, price, place, and promotion strategies for the smartphone

Which TWO options are the main reasons John and Jane are completing a business plan for their new cafe?

• To show that they have the self belief in their cafe

• To apply for finance from the bank, angel investor or venture capitalist

• To plan out how much profit they are going to make, so that the cafe is viable.

• To solely create a logo so that the cafe looks good

Answer explanation

Putting as much detail into the business plan is important is it is going to be the main way that you can apply for business finance.

If your business plan makes no sense banks and other investors are not going to want to invest in your business.

A written document that describes an idea for a product or service and how it will make money.

• List of Expenses

• Startup Costs

• Business Plan

The amount of money you need to launch your business.

• Start-up costs

• List of Expenses

• Pricing

What is the cost of making each product or providing each hour of service?

• profits and expenses

• cost per unit

• business plan

An existing business may use a business plan to:

• Focus on the business idea before start-up

• Present to shareholders at the AGM

• Secure external finance for business expansion

• To share with employees in the business